Cryptologic post Q2 results
Online gaming software developer, CryptoLogic, has released a trading update which reports that their once optimistic Q2 performance forecast was worse than expected, resulting in the hiring of a major consultancy firm to help with future forecasting.
The update reported that Q2 total revenue is expected to be down compared with Q1, and that there will be greater total costs than originally forecast.
Why such bad forecasts?
Perhaps the biggest factor in CryptoLogic's poorer-than-expected performance was due to the delay of their 'full suite of casino games', which were originally meant to be released (at Betsafe) in Q2, until the beginning of this quarter. Also, more players chose to play blackjack and roulette than forecast, at the expense of other, more profitable, games.
Despite the revenue from CryptoLogic's branded games having increased by around 20% qoq, the substantial decline in “other” revenue saw them feel the need to hire a major consulting firm to help them with their future forecasts.
According to company's recent update: “In light of continuing losses and the difficulty in forecasting results, a major consulting firm experienced in the gaming and betting industry has been retained to undertake a review of current operations with a view to assisting the Board in enhancing its strategy in the interests of stakeholders.”
The update also read: “The Board and the Company acknowledge that the return to profitability is still contingent upon revenue growth, additional cost savings and a tight control of cash.”
CryptoLogic's official Q2 results are expected to be announced on 12th August.